Sharda Cropchem Q2 Results Review - Subdued; Near-Term Outlook Bleak: Prabhudas Lilladher

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Prabhudas Lilladher Report.We trim our FY24/25/FY26E estimates of Sharda Cropchem Ltd. by 11%/12%/12% and revise target price to Rs 470 (earlier Rs 540) based on 12 times FY26 earnings per share, citing near-term pressures on both revenue and margin led by adverse weather condition in key geographies plus high inventory concerns at manufacturer and distributor levels. Sharda Cropchem reported subdued results with revenue decline of 20% YoY to Rs 5.8 billion (our estimate: Rs 7.9 bllion), led by volume/price growth of +20%/-45%YoY partially aided by positive forex variance of 5.0% YoY. Gross margins contracted 230 basis pointss YoY to 25.1% largely led by-high cost inventory provisions of Rs 130 million; higher sales return of Rs 700 million; andacute pressure on price realizations (declined to the tune of 35-40%) particularly in the North American Free Trade Agreement region. Lower gross margin coupled with higher opex up 570 bps YoY has resulted in Ebitda contraction at Rs 349 million as against Rs 1.4 billion in Q2 FY23 (including IU&AD write-off of Rs 28 million in Q2 FY24 versus Rs 15 million in Q2 FY23). Maintain ‘Accumulate’ rating..Click on the attachment to read the full report:.Rossari Biotech Q2 Results Review - Weak Raw Material Prices Led To Tepid Earnings Growth: Yes Securities.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Sharda Cropchem Q2 Results Review - Subdued; Near-Term Outlook Bleak: Prabhudas Lilladher

Spent Rs 2.2 billion capex in H1 FY24; full year capex is likely to be around Rs 4 billion.

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